US stocks mostly up as holiday shopping season begins

NEW YORK -- Wall Street stocks mostly climbed to end a shortened trading day on Friday, with investors keeping close watch on consumer spending at the unofficial start of the year-end shopping season.

The Dow Jones Industrial Average rose 0.3 percent to 35,390.15.

The broad-based S&P 500 edged up 0.1 percent to 4,559.34, while the tech-heavy Nasdaq Composite Index ticked down 0.1 percent to 14,250.85.

Markets closed early on "Black Friday," the Friday after the Thanksgiving holiday when retailers often offer major discounts.

The annual sales day, which is followed by the newer "Cyber Monday," marks the start of the holiday shopping season.

"Today's lack of movement can be ascribed to a general lack of trading interest befitting the day after Thanksgiving," said Briefing.com in a note.

Consumers are expected to be increasingly price-conscious this year, still jaded by stubborn inflation and lingering effects from the upheaval of the pandemic.

But "how that ends up impacting retailers' profits remains to be seen" for now, Briefing.com added.

Among major retailers, Walmart shares advanced 0.7 percent while Target was up 0.5 percent.

Amazon shares were flat after it was hit by strikes in Europe, as workers demand better wages and working conditions.

UNI Global Union warned Amazon would face strikes and protests in more than 30 countries around the world, including the United States.

Agence France-Presse

Global stocks finish mixed to cap lackluster August

NEW YORK -- Global indexes mostly dipped on Thursday, capping off a lackluster month of growth for markets around the world.

European stocks mostly slipped, as did major Asian markets with the exception of Japan's Nikkei 225 index, which rose on renewed confidence in manufacturing stocks after auto giant Toyota posted strong earnings results.

Wall Street stumbled to end Thursday's session, with the Dow and S&P 500 both falling as traders digested the latest inflation numbers and looked ahead to jobs data that could prove crucial to future interest rate decisions.

A small rally on Thursday failed to save the Nasdaq from seeing its worst month of the year, while the pan-European Euro Stoxx 50 also saw a disappointing month overall.

Both the US Federal Reserve and the European Central Bank have adopted a more data-dependent approach on whether to increase interest rates further.

That made the latest inflation data all the more important ahead of the next monetary policy meetings due in September.

The Fed's preferred measure of inflation, the personal consumption expenditures (PCE) price index, rose to a 3.3 percent annual increase in July, up from 3.0 percent in June.

Thursday's data was "probably widely viewed as just fine," Craig Erlam of the OANDA trading platform told AFP.

"It's good enough for now but there's still a lot of improvement needed over the coming months," he added, before the Fed can begin relaxing monetary policy.

Sticky inflation

Across the Atlantic, stocks in Frankfurt rose while those in Paris fell after data showed the annual rate of inflation in the eurozone remained unchanged in August at 5.3 percent. This came as a smaller drop in energy prices balanced out a rise in food and drinks costs.

Analysts said the data increased the chance of the European Central Bank deciding against a further interest rate hike next month. That in turn weighed on the euro.

"With unemployment starting to show signs of increasing across the bloc, markets are starting to price an increased probability of a pause in the ECB's rate hiking cycle when the governing council next meets on September 14th," said analyst Michael Hewson at CMC Markets.

In Asia, China revealed that factory activity shrank again this month while services weakened, which will likely pile further pressure on authorities to press ahead with measures to kickstart the sputtering economy.

Officials have announced a series of pledges to help various sectors -- particularly the property industry -- and there is an expectation that more is on the way.

In the latest measure, local reports Thursday said the central bank is drawing up policies that will make it easier for private firms, including developers, to access funding.

But analysts say more wide-ranging government spending will be required to appease nervous investors.

Fresh data showing the country's manufacturing sector contracted for a fifth straight month in August only added to the arguments for more help.

On the corporate front, shares in UBS jumped six percent after the bank giant said it would fully absorb the Swiss unit of its recently-swallowed rival Credit Suisse.

Agence France-Presse

Global stock markets mixed as rally fades

NEW YORK -- Stock markets diverged Wednesday as a global rally faded, despite more data that soothed fears of a further rise in US interest rates.

Wall Street closed higher as private sector hiring data came in softer than expected, while second quarter GDP growth was revised down to 2.1 percent on an annual measure.

The latest figures and other weaker numbers revealed on Tuesday "appear to be adding weight" to the idea of a pause in rate hikes by the US Federal Reserve next month, said CMC Markets UK analyst Michael Hewson.

This adds to "further downward pressure on yields," he said. Lower yields on bonds tend to boost stocks as they signify lower borrowing costs for companies.

Fed chief Jerome Powell said last week the US central bank stands ready to hike interest rates further, having already pushed them to a 22-year high to tame prices, if data shows the US economy continues to grow strongly and price pressures persist.

But the Fed's data-dependent approach is also seen as keeping the possibility open that interest rates may not go any higher if the world's largest economy cools.

That set off strong gains at the beginning of the week, particularly after Tuesday's report on US job openings, which was softer than anticipated. Analysts said it would give monetary policymakers room to hold off on lifting borrowing costs again.

"Signs of America's cooling economy have raised hopes that the pause button will be pushed on punishing interest rate hikes," noted Susannah Streeter, head of money and markets at Hargreaves Lansdown.

But with stocks having posted solid gains in recent days, the rally may be running out of steam.

"We suspect traders might be showing some hesitation, thinking that this heady action can't persist or, at least, opting to wait and see if it does," said analyst Patrick O'Hare at Briefing.com.

On Wednesday, the Dow closed 0.1 percent higher while the S&P 500 rose 0.4 percent.

Investors may also be showing caution as more data is due later this week, including the Fed's preferred gauge of inflation -- the personal consumption expenditures price index -- as well as US government payrolls data.

"Today's data was never likely to be overly impactful with tomorrow's inflation, income, and spending figures, prior to Friday's payrolls, always the primary focus," said analyst Craig Erlam of OANDA.

"That could well set the tone for September ahead of some major central bank meetings," he added in a note.

In Europe, London stocks rose while Frankfurt and Paris fell. Tokyo closed higher, but Shanghai and Hong Kong flattened.

Focus was also on China after a report said its biggest state-backed banks would slash rates on mortgages and deposits as part of a drive to support the country's beleaguered property sector.

And after Asian markets closed, China's embattled real estate giant Country Garden reported losses of approximately $6.7 billion for the first half of this year while warning of possible default.

The company's cash flow problems have ignited fears that it could collapse and spread turbulence through China's economy and financial system.

Agence France-Presse

Global stock markets slump after US ratings downgrade

NEW YORK — Global stock markets slumped Wednesday after Fitch stripped the United States of its top credit rating, citing a growing federal debt burden and an "erosion of governance."

Fitch's decision Tuesday night to downgrade the United States from AAA to AA+ sparked a fiery rebuttal from the Biden administration.

Treasury Secretary Janet Yellen characterized Fitch's move as "entirely unwarranted," calling it "puzzling in light of the economic strength we see in the United States."

Wall Street's main indices moved lower, with the S&P 500 finishing down 1.4 percent.

Europe's main markets closed with losses of more than one percent.

"Market participants were already contending with the nagging notion that the stock market was overbought on a short-term basis and due for a pullback," said market analyst Patrick O'Hare at Briefing.com.

"It didn't necessarily need another excuse to continue with a consolidation trade, yet Fitch Ratings provided one after Tuesday's close when it downgraded its US credit rating to AA+ from AAA."

Ratings downgrades often mean it becomes more expensive for a government to borrow, but the status of US government bonds, or Treasuries, as a highly liquid safe-haven asset actually saw their yield dip immediately after the announcement.

The yield on 10-year bonds later rose in trading on Wednesday, which traders said was more due to expectations of higher volumes of US borrowing than the Fitch downgrade.

DOWNGRADE 'CHANGES LITTLE' 

Stephen Innes, managing partner at SPI Asset Management, said the downgrade will be "unlikely" to "cause a significant Treasuries sell-off or prompt a major shift in investor behavior mainly because investors experienced a similar downgrade from S&P in 2011 and came away unscathed."

Michael Hewson, chief market analyst at CMC Markets UK, agreed the impact would be minimal.

"The loss of the AAA rating is damaging from a political point of view, but it changes little in the wider scheme of things when it comes to the investability of the US relative to its peers," he said.

"It’s not as if China, or any other country in Europe is any safer when it comes to investability, as well as political stability."

The downgrade follows a long, drawn-out row between Republicans and Democrats earlier this year over raising the US borrowing ceiling, which had fueled fears of a devastating default by the world's top economy.

While a deal was eventually struck, the saga rattled markets and reinforced the sense of long-running deadlock on Capitol Hill that has seen the gears of government jammed up.

In an interview with CNBC, Fitch Ratings senior director Richard Francis pointed to a "pretty steady deterioration in governance over the last couple of decades" in the United States.

Among the elements he highlighted was January 6, referring to the date in 2021 when supporters of Donald Trump stormed Congress in a bid to prevent certification of his rival Joe Biden's election victory.

Other factors, he added, included "constant brinksmanship surrounding the debt ceiling" along with Republicans and Democrats' inability to generate "meaningful, long-term solutions" on fiscal issues surrounding programs like social security and Medicare.

Agence France-Presse

US, European stocks push higher as inflation eases

NEW YORK -- Wall Street rebounded Friday and eurozone stocks edged higher on data showing easing inflation, while the yen yo-yoed after Japan's central bank tweaked its ultra-loose monetary policy.

The Dow added 0.5 percent, while the broader S&P 500 climbed 1.0 percent and the tech-heavy Nasdaq Composite Index jumped 1.9 percent.

This came after data showed that the Federal Reserve's preferred gauge of inflation, the personal consumption expenditures price index, rose 3.0 percent last month from June 2022.

The figure was down from a 3.8 percent rise in May, extending a downward trend.

The indicator is still above the central bank's two percent target over the longer run, "yet the Fed is bound to take some solace from the recognition that it continues to move in the right direction," said Briefing.com analyst Patrick O'Hare.

Stock markets have enjoyed a broadly positive week on hopes the US Fed and other central banks were at or close to the end of more than a year of monetary tightening as inflation comes down.

The Fed on Wednesday said that future rate decisions would be determined by data, which was welcomed by investors who saw recent indicators -- pointing to an easing of price pressure and softening of the labor market -- as giving it room to hold off more increases.

And on Thursday, European Central Bank boss Christine Lagarde left open the possibility of a pause in rate hikes.

Paris stocks edged 0.2 percent higher on Friday after data showed the French economy grew a forecast-busting 0.5 percent in the second quarter, while inflation eased in July.

Frankfurt added 0.4 percent, setting another record close, on slowing inflation despite data showing the German economy stagnated in the second quarter.

"With price pressures in Germany also slowing more than expected in July there is a sense that this week's rate hike by the ECB may well have been its last, with a number of ECB policymakers expressing increasing caution over the growth outlook," said analyst Michael Hewson at CMC Markets.

After a closely-watched meeting, the Bank of Japan (BoJ) said it would allow "greater flexibility" in government bond markets, having allowed them to move in a tight band in a process known as yields curve control.

But on Friday it said that while it would maintain that range, its upper and lower limits would be used as references, rather than being rigid.

The move means rates in Japan would be allowed to rise more than previously. The yen swung around after the announcement, but was lower against both the dollar and the euro near 2100 GMT.

The currency has been hammered for more than a year as the BoJ refused to shift from its loose policy, even as central banks around the world pushed up interest rates to fight surging inflation.

However, with prices picking up at home and the yen struggling, pressure has been growing on the bank to change tack.

The Nikkei 225 index sank more than two percent on the prospect of higher borrowing costs before paring the losses by the close.

"Market reaction has been very choppy as it is not a straightforward decision to digest," said Khoon Goh, of Australia and New Zealand Banking Group.

Asian markets closed out the week mixed. Hong Kong and Shanghai were boosted by hopes for further measures by Beijing to boost the struggling Chinese economy.

- Key figures around 2050 GMT -

New York - Dow: UP 0.5 percent at 35,459.29 (close)

New York - S&P 500: UP 1.0 percent at 4,582.23 (close)

New York - Nasdaq: UP 1.9 percent at 14,316.66 (close)

London - FTSE 100: FLAT at 7,694.27 (close)

Frankfurt - DAX: UP 0.4 percent at 16,469.75 (close)

Paris - CAC 40: UP 0.2 percent at 7,476.47 (close)

EURO STOXX 50: UP 0.4 percent at 4,466.50 (close)

Tokyo - Nikkei 225: DOWN 0.4 percent at 32,759.23 (close)

Hong Kong - Hang Seng Index: UP 1.4 percent at 19,916.56 (close)

Shanghai - Composite: UP 1.8 percent at 3,275.93 (close)

Dollar/yen: UP at 141.17 yen from 139.48 yen on Thursday

Euro/dollar: UP at $1.1020 from $1.0979

Pound/dollar: UP at $1.2851 from $1.2796

Euro/pound: DOWN at 85.72 from 85.80 pence

West Texas Intermediate: UP 0.6 percent at $80.58 per barrel

Brent North Sea crude: UP 0.9 percent at $84.99 per barrel

Agence France-Presse

Asia tracks Wall St losses on Fed tightening concerns

HONG KONG - Asian stocks opened with losses on Monday, as unease lingered over tightening monetary policy by the Fed and investors awaited earnings reports by retailers due this week.

Wall Street stocks mostly fell Friday. Both the S&P 500 and the Nasdaq retreated as the yield on the 10-year US Treasury note climbed above 2.7 percent, a signal markets are preparing for more tightening as the Federal Reserve battles inflation.

The losses continued Monday in Tokyo, as well as in Hong Kong and Shanghai where the main indexes lost more than two percent.

Taipei and Seoul were also down, while Sydney and Jakarta posted slight gains.

"Stocks are soft at the Monday open on increasing evidence the Federal Reserve will take a more committed approach to its monetary policy inflation-fighting stance," said Stephen Innes at SPI Asset Management.

"However, markets have been surprisingly resilient as discussions under the surface debated whether this week's US March CPI data will hint at the peak of the inflation cycle and help the Fed's chance to better engineer a soft landing, however narrow that path may seem."

And Takashi Hiroki, chief strategist of Monex, added: "Focus this week is on the US and Chinese consumer price indexes for March," among other data, to glean clues on the Fed's monetary policy and that of other central banks.

The US central bank has recently taken a hawkish tone as it embarks on an aggressive tightening path, prompting traders to fret over the prospect of higher interest rates.

The euro climbed as much as 0.7 percent against the dollar before paring the gain, suggesting some relief over the French election but ongoing wariness.

Investors had fretted about the implications of a victory for President Emmanuel Macron's nationalist rival Marine Le Pen in the midst of the war in Ukraine, given her long-standing sympathies for Russia.

Macron was set to beat Le Pen in the first round of elections Sunday by a larger-than-expected margin, the two candidates advancing to a run-off later this month.

"Make no mistake: nothing is decided," Macron told supporters.

Agence France-Presse

Wall Street bounces from Omicron selloff as Nike, Micron lead gains

Wall Street's main indexes rose more than 1 percent on Tuesday, boosted by Nike and Micron following strong earnings, while beaten-down big technology stocks bounced back from an Omicron-driven rout in the previous session.

The rapidly spreading variant of the coronavirus has rattled stock markets around the world, triggering major sell-offs in the final month of the year due to worries about the strain's impact on a global economic recovery.

Nike Inc rose 6.6 percent, boosting the Dow Jones Industrial Average. It beat quarterly estimates for profit and revenue, and sounded confident of a letup in supply chain problems in its next fiscal year.

Micron Technology Inc, up 9.5 percent, led the advance among chipmakers after it forecast upbeat second-quarter earnings and topped Wall Street expectations for quarterly profit and revenue.

The two companies positive updates helped allay some concerns about broader supply chain constraints in a high inflation environment, which has become a cause for concern for central banks globally.

Ten of the 11 major S&P 500 sectors rose in early trading, while the Philadelphia SE Semiconductor index gained 1.7 percent.

"We got oversold yesterday and we are bouncing back a little bit today," said Dennis Dick, a proprietary trader at Bright Trading LLC in Las Vegas.

"This market is more of a dead cat bounce as opposed to this new bull market that is going to rage into 2022. There are just too many concerns."

Mega-cap growth firms, including Tesla Inc, Microsoft Corp, Apple Inc, Amazon.com Inc , Meta Platforms and Alphabet Inc rose between 0.4 percent and 1.7 percent after taking a beating on Monday.

Investors have taken a more defensive stance this month, with sectors such as consumer staples, real estate and utilities among top gainers.

Most of the defensive plays made little gains on Tuesday.

"It's good to see green going into the next year but if you just take a step back and look at the broader picture you're seeing financial conditions change," said Joshua Chastant, senior investment analyst at GuideStone Capital Management.

"Our base case is that next year is going to have a lot of volatility around it, and it's definitely not going to be business as usual in the markets."

At 12:00 p.m. ET, the Dow Jones Industrial Average was up 461.08 points, or 1.32 percent, at 35,393.24, the S&P 500 was up 49.49 points, or 1.08 percent, at 4,617.51 and the Nasdaq Composite was up 187.12 points, or 1.25 percent, at 15,168.07.

Travel-related stocks, which fell in the previous session on the prospect of tighter curbs, rose on Tuesday. The S&P 1500 Airlines index jumped 5.8 percent and was set for its best day since early December.

General Mills Inc fell 4.2 percent after missing analysts' estimates for quarterly profit.

Advancing issues outnumbered decliners by a 4.46-to-1 ratio on the NYSE and by a 2.96-to-1 ratio on the Nasdaq.

The S&P index recorded nine new 52-week highs and no new low, while the Nasdaq recorded 20 new highs and 67 new lows. (Reporting by Shreyashi Sanyal and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva, Uttaresh.V and Maju Samuel)

-reuters-

Apple inches closer to $3 trillion market cap

Apple Inc is within striking distance of a $3 trillion market capitalization, a milestone that would make it as big as the world's fifth largest economy after Germany, just over a year after breaching the $2 trillion mark.

Shares of Apple were up 1.6 percent at $174. They need to trade at $182.85 to hit the mark and cap a strong rally that has been powered by investors betting on its brand and viewing it as a comparative safe haven.

The stock has jumped about 30 percent this year on top of an 80 percent surge in 2020. In comparison, the S&P 500 has risen 25% for the period.

Its peers in the trillion-dollar club - Microsoft, Amazon, Alphabet and Tesla - have all gained between 10 percent and 70 percent.

"Apple does seem to be more immune to the ebb and flow of economic forces just because of this really strong brand. Its new product pipeline is pretty strong too," Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown said.

"There is an expectation that Apple is still going to come for you even though there have been some weaknesses in getting hold of the handsets and making sure that they're available for the public."

Apple hit the $1 trillion in market capitalization in 2018 and took two years to double that valuation.

The stock has already breached Wall Street's median price target by $4, with a majority of analysts covering the stock rating it "buy" or higher.

Apple briefly lost its title as the most valuable company to Microsoft Corp earlier this year after CEO Tim Cook's comments on supply chain woes and the struggle to procure semiconductors and components to make smartphones and laptops.

Microsoft is about $500 billion short of reaching $3 trillion in market capitalization. 

-reuters-

Coinbase heads for $89 billion valuation in Nasdaq debut

Shares of Coinbase Global Inc were set to jump 36 percent above their reference price in the cryptocurrency exchange's market debut on Wednesday, the latest sign of the surge in interest and trading in bitcoin and other digital currencies.

At 10:12 a.m. ET, the company's stock was indicated to open at $340, up from a reference price of $250 per share.

At the indicated price, the digital asset exchange would be valued at around $89 billion. 

-reuters-

Robinhood, at the heart of retail trading frenzy, files for own IPO

Robinhood Markets Inc, the online brokerage at the center of the historic retail trading frenzy that gripped Wall Street this year, has confidentially submitted plans to regulators for a US initial public offering, the company disclosed on Tuesday.

The move to push ahead with a stock market flotation comes in the middle of a historic boom in US capital markets, fueled largely by dealmaking through so-called special purpose acquisition companies.

Companies have raised well over $100 billion through initial public offerings (IPOs) in the first three months of the year and are poised to overtake 2020's record haul of $167 billion, data from Refinitiv and Dealogic showed. The amount raised includes blank-check IPOs.

Reuters reported in December that Robinhood had picked Goldman Sachs Group Inc to lead preparations for a stock market flotation.

The company is yet to determine the number of shares to be offered and the price range, it said in a blog post.

Robinhood had considered going public through a direct listing in the weeks leading up to the filing, people familiar with the matter said.

In a direct listing, a company does not sell any shares in advance of its market debut, as is the case with IPOs.

Menlo Park, California-based Robinhood was founded in 2013 by Stanford University roommates Vlad Tenev and Baiju Bhatt. The company's platform allows users to make unlimited commission-free trades in stocks, exchange-traded funds, options and cryptocurrencies.

The platform's easy-to-use interface has made it a go-to for young investors trading from home during coronavirus-induced restrictions and its popularity soared during the retail trading frenzy.

The company, however, faced criticism after it was forced to curb trading in certain stocks during the social-media fueled trading frenzy due to a 10-fold rise in deposit requirements at its clearinghouse.

It was forced to raise a whopping $3.4 billion in emergency funds after its finances were strained due to the massive jump in retail trading.

The funding rounds were led by Ribbit Capital and included existing investors ICONIQ, Andreessen Horowitz, Sequoia Capital, Index Ventures and New Enterprise Associates. The latest financing valued Robinhood at around $30 billion, according to people familiar with matter.

Robinhood is currently being probed by US regulators over its temporary trading curbs on the so-called "meme stocks". The company has set aside $26.6 million for a potential settlement around trading outages in March 2020, as well as its options trading policies. 

-reuters-

GameStop ends up 7.3pct after wild swings, other 'meme stocks' soar

NEW YORK - GameStop ended 7.3 percent higher on Wednesday after wild gyrations in the resurgent rally that has vaulted shares of the video game retailer and other so-called meme stocks closer to the peaks of late January.

Shares of GameStop closed at $265 following turbulent trading that saw them rise by as much as 41 percent to a peak of $348.50, a move some analysts said was accelerated by bearish investors unwinding bets against the stock.

The rally put the company’s market capitalization at $18.48 billion, making it the biggest listing on the S&P 600 index of small-cap stocks. At their session high, GameStop shares were up 800 percent from last month's low but still 28 percent below their late January peak.

Traders exchanged almost $20 billion worth of GameStop shares, making it the Wall Street session's second most-traded company after Tesla and ahead of Apple.

Other stocks popular with retail investors in forums such as Reddit’s WallStreetBets also enjoyed outsized gains. Headphone maker Koss Corp soared more than 100 percent at one point and cinema operator AMC Entertainment jumped nearly 19 percent before erasing gains.

The moves drew cheers on WallStreetBets and other online forums and eyerolls from other market participants.

"You just have wild speculation .. They're guessing," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management in New York. "I wouldn't touch it with a 10-foot pole right now."

Investors short GameStop shares have incurred over $1.3 billion in losses over the last couple of days, forcing some to abandon their positions and buy back the stock in a phenomenon known as a short squeeze, said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners.

Shorts have covered some 3 million shares over the last seven days, worth $742 million, the firm’s data showed.

"As GameStop keeps going up, we are going to continue to see short-covering as more shorts reach their maximum pain threshold and are forced out of their trades," Dusaniwsky said.

GameStop retains a legion of devout followers after a social media frenzy in January triggered a massive rally in which its shares surged more than 1,600 percent.

That spike triggered a short squeeze that shook hedge funds such as Melvin Capital.

But fuel for further short squeezes may be running out: About 20.5 percent of GameStop's share float is sold short, the lowest in at least three years, according to S3 data.

Market strategists have also said tens of billions of dollars from stimulus checks sent to Americans through U.S. President Joe Biden's coronavirus relief package could find their way into the stock market, including into the "meme stocks" promoted by retail traders online.

GameStop bulls also hope for a profit boost from the transition to e-commerce for the video game retailer, led by shareholder and Chewy.com co-founder Ryan Cohen, who is on the company's board. The company has said it would report earnings on March 23.

Denizens of WallStreetBets exhorted one another to hold on for more gains, while others lamented selling too early.

"Makes (me) physically sick I sold all 39 shares of GME at $120 at a loss cause I thought it wasn’t happening again," Reddit user TheKingTodo wrote.

Separately, on Wednesday, shares of U.S. gaming company Roblox Corp RBLX.N closed up 54.4 percent in its New York Stock Exchange trading debut on Wednesday, valuing the company at $45.2 billion.

-reuters-

'We love this stock': GameStop effect spreads as calls for probe build

The battle between small-time traders and hedge funds that has shaken US and European stock markets moved into Asia on Thursday, with surges in several Australian companies joining a list of social-media hyped moves that have cost financial institutions billions of dollars.

Heavily shorted Australian shares, including Webjet and Tassal Group, climbed more than 5% even as Sydney's benchmark ASX 200 index fell 2%.

In New York, GameStop, the video game chain at the heart of the slugfest between Wall Street and Main Street, added another 37% in early trading after a two-week, 1,700% surge that has hammered fund investors who were betting the stock would fall.

Driven by an army of individual traders who work through online brokerage apps like Robinhood.com and discuss stocks on anonymous social media messaging boards, the dramatic jump in the stock price of companies including GameStop, BlackBerry Ltd and AMC Corp drew more calls for regulatory scrutiny from commentators.

"The frenzy raises all sorts of questions with respect to possible market manipulation," said Michael Hewson, chief market analyst at retail broker CMC Markets UK.

"It is already illegal for institutions to coordinate in the manner currently being seen in moving prices on these stocks, raising questions about the legality of what is currently taking place right now on these forums."

The short squeeze - where traders have to abandon loss-making "short" bets on a stock falling because it has instead risen - also fueled a 2% slide in the benchmark S&P 500 on Wednesday as investors sold other assets to cover their losses.

Futures tracking the main New York index were down another 0.6% on Thursday.

Reddit discussion threads were again humming with chatter about the stocks on Thursday as membership of the trader-focused group WallStreetBets raced past 4 million.

In one discussion, thousands of participants responded "We love this stock" to a post that called for more buying of GameStop and cast retail traders as Iron Man against a hedge fund Thanos in a nod to the superhero movie "Avengers: Endgame".

BlackBerry and Nokia, however, slipped more than 5% in premarket trading after recording hefty gains this week and derivatives positioning pointed to a greater rise in the number of orders betting GameStop would fall.

"The idea that this is about hedge fund short-sellers transferring funds to a mass of ordinary retail buyers is a compelling story," said Paul Donovan, chief economist of UBS Global Wealth Management.

"But it is also a story that is unlikely to hold true beyond the brief period of the frenzy."

GAME ON

The war began last week when famed short seller Andrew Left of Citron Capital bet against GameStop and was met with a barrage of retail traders betting the other way. He said on Wednesday he had abandoned the bet.

Regarded by market professionals as "dumb money", the pack of traders, some of them former bankers working for themselves, have become an increasingly powerful force worth 20% of equity orders last year, data from Swiss bank UBS showed.

The only-way-is-up nature of stock markets over the past decade, fueled by a constant flow of newly created money from major central banks, has also made it less risky to bet on shares rising.

The US Federal Reserve kept those taps firmly open at its latest meeting on Wednesday.

This week's turmoil caught the attention of the White House, with President Joe Biden's economic team - including Treasury Secretary Janet Yellen on her first full day on the job on Wednesday - "monitoring the situation."

Massachusetts state regulator William Galvin called on NYSE to suspend trading in GameStop for 30 days to allow a cooling-off period.

"The prospect of intervention here is clearly high, but this will just galvanize the (WallStreetBets) community as it just brings home the feeling of inequality in financial markets," said Chris Weston, head of research at broker Pepperstone in Melbourne.

"It's fine to prop up zombie companies through Fed actions but if retail follows a path that greatly distorts asset prices by targeting short sellers, then this gets shut down."

Reddit said on Wednesday that it had not been contacted by authorities over the surges.

-reuters-

Goldman Sachs earnings surge amid pandemic upheaval

NEW YORK - Goldman Sachs reported another blowout quarter Tuesday to conclude a highly profitable 2020 despite the coronavirus pandemic, which provided lucrative opportunities to the investment bank while battering much of the US economy.

Goldman's profits soared to $4.4 billion in the final quarter of the year, more than double the earnings from the same period a year ago, as it scored higher revenues in all four operating divisions and easily topped analyst estimates.

The just-ended quarter showed a continuation of the heady trends from Goldman's third quarter: more strength in equity and fixed-income trading amid financial markets volatility and huge growth in financial advising revenues as corporate clients pursued mergers or raised equity against a fast-changing macroeconomic backdrop.

And amid coronavirus-induced restrictions on movement, the financial giant saw lower travel and entertainment costs.

Chief Executive David Solomon praised the company's performance, but cautioned that the outlook for the global economy remains dependent on getting Covid-19 under control with a successful vaccination campaign.

"I urge political leaders at all levels and across all jurisdictions to do everything possible to implement a coordinated and comprehensive distribution plan," Solomon said during an earnings conference call. 

"In its absence, economic recovery will be unnecessarily delayed."

Several key economic sectors remain in deep trouble due to the prolonged downturn, including energy, airlines, hospitality and commercial real estate.

EYEING MAIN STREET GROWTH

Goldman enjoyed especially strong growth in fourth quarter revenues in investment banking, up 27 percent, and global markets, up 23 percent.

Overall revenues rose 18 percent from the year-ago period to $11.7 billion.

For all of 2020, Goldman Sachs reported profits of $8.9 billion, up 13 percent, on a revenue increase of 22 percent to $44.6 billion.

Goldman's results came on the heels of a series of mixed earnings releases Friday from rival financial heavyweights JPMorgan Chase, Citigroup and Wells Fargo.

Bank of America on Tuesday reported fourth-quarter earnings of $5.2 billion, down 23 percent from the year-ago period on a 10.5 percent drop in revenues.

Like JPMorgan and others that reported last week, Bank of America's results were boosted by an $828 million reserve release after earlier provisions for bad loans from coronavirus were not needed. 

However, Bank of America suffered a 16 percent drop in net interest income due to lower interest rates.

Goldman, which has a much smaller consumer-oriented business than those other large banks, ended up with a net increase in provisions for credit losses of $293 million, citing the need for reserves for credit card loan growth.

Goldman Sachs has been building up its consumer-oriented Marcus business since 2016, and Solomon indicated plans to continue to invest in the venture.

Goldman is getting ready to launch a new investment platform on Marcus that will permit individuals to put in as little as $1,000 through Goldman programs on asset allocation and exchange traded funds. 

Goldman is also preparing a new digital checking offering for later this year, Solomon said.

Solomon reiterated that Goldman is intent on building Marcus into a long-term business and will set the bar "extremely high" on acquisition targets.

Solomon said additional investments in the venture could delay the targets for the consumer business to reach profitability, but would not affect firm-wide financial targets.

Goldman shares fell 2.3 percent to $294.20 in early afternoon trading, while Bank of America fell 0.7 percent to $32.77. 

Analysts attributed the sell-off in part to a rise of more than 30 percent in leading bank shares in the prior two and a half months.

Agence France-Presse

Wall Street rises, Nasdaq hits record high on US recovery hopes

Wall Street's main indexes rose and the tech-heavy Nasdaq hit a record high on Friday as optimism around an economic rebound next year outweighed fears of an expected surge in coronavirus infections following the Thanksgiving holiday.

Five of the 11 major S&P indexes were up by mid-morning, with information technology jumping 0.8% on demand for stay-at-home winners Apple Inc, Microsoft Corp and Nvidia Corp.

Sentiment was also lifted by President Donald Trump saying he will leave the White House if the Electoral College votes for President-elect Joe Biden, the closest he has come to conceding the Nov. 3 election, market participants said.

"While it was certainly the expectation of the vast majority of traders that there would be an easy transfer of power, at the end of the day it gives a little bit of confidence," said Rick Meckler, a partner at Cherry Lane Investments in New Jersey.

Market volatility, as measured by the CBOE volatility index , slipped to levels last seen in late-February. Trading volumes are expected to be light as the U.S. stock market closes early on Friday.

By 11:03 a.m. ET, the Dow Jones Industrial Average was up 0.19%, the S&P 500 was up 0.36% and the Nasdaq Composite was up 1.08%.

Hopes of more stimulus, signs of progress in developing COVID-19 vaccines and encouraging economic data have lifted the three main U.S. stock indexes by more than 10% this month and set the S&P 500 on course for its best November ever.

A rotation into sectors deemed to benefit from an economic recovery, such as industrials and financials, has also powered the Dow to record highs and put it on track for its biggest monthly gain since 1987.

But with the next fiscal stimulus package now expected only after Biden is sworn in on Jan. 20, traders said the nascent economic rebound could slow again.

"We have been waiting for stimulus forever and the market's certainly expecting something," said Joe Saluzzi, co-manager of trading at Themis Trading LLC in New Jersey, adding that "it will probably take even longer."

All eyes will be on the monthly employment report on Dec. 4, with economists polled by Reuters expecting unemployment to dip to 6.8% from 6.9%, but to remain above the 4.5% rate in March, before much of the U.S. economy went into lockdown.

In thin company news, U.S.-listed shares of iQIYI Inc fell 2.3% after Reuters reported Alibaba Group Holding Ltd and Tencent Holdings Ltd had put on hold talks to buy a controlling stake in the video streaming service.

Advancing issues outnumbered decliners 1.11-to-1 on the NYSE and 1.36-to-1 on the Nasdaq.

The S&P index recorded 22 new 52-week highs and no new low, while the Nasdaq recorded 127 new highs and seven new lows. 

-reuters-

Investors celebrate Biden winning US presidency

NEW YORK - Investors and financial executives took a big sigh of relief on Saturday after major networks declared Democrat Joe Biden winner of the US presidential election, offering some certainty after days of conflicting reports about who might run the White House next term.

Although current President Donald Trump said he would fight the results in court, Wall Streeters who offered comments felt there was little doubt Biden would ultimately succeed after election predictors including the Associated Press, NBC and Edison Research, upon which Reuters relies, called the presidency for Biden.

"Biden is good news for the markets," Christopher Stanton, chief investment officer at Sunrise Capital Partners, said on Saturday. "We're all so tired of the whipsaw that came with the Trump tweets."

Republicans have filed several lawsuits over ballot counting already and Trump said his campaign will file more. The Republican National Committee has been trying to raise at least $60 million to fund legal challenges brought by Trump, Reuters reported on Friday.

Apart from those battles, investors have been worried about the people Biden might appoint to his Cabinet, and whether the U.S. Senate would go to Republicans or Democrats.

A Republican Senate would offer a check on Biden's appointments, forcing him to opt for more moderate selections. Expected run-offs in two Senate races in Georgia could muddy that scenario.

For now, though, investors said they were happy with the election finally being called after what seemed like unending tension as ballots were counted following Election Day on Tuesday.

"Markets are going to like it because Biden is not going to go too far left," said Jim Awad, senior managing director of Clearstead Advisors. "It’s going to be a centrist government, not a government by tweet."

The financial industry was not reacting in a bubble: major cities from New York to San Francisco erupted in celebration on Saturday. Though Trump undoubtedly has significant support throughout the country, including on Wall Street, 2020 has been a difficult year for the United States.

The coronavirus pandemic has taken a huge toll on the country, killing some 236,250 people so far, while social unrest over the police killing of George Floyd, a Black man, has only hardened divisions that already existed.

Many voters were hoping for a decisive election that would offer some calm, whichever candidate they cast ballots for.

JPMorgan Chase & Co Chief Executive Jamie Dimon, who heads the largest U.S. bank and is a leading voice for the financial industry, called for unity and calm.

"Now is a time for unity," Dimon said in a statement. "We must respect the results of the U.S. presidential election and, as we have with every election, honor the decision of the voters and support a peaceful transition of power."

Robert Wolf, a major Democratic donor and former UBS Group AG executive who now runs 32 Advisors, was less demure: "I am ecstatic, relieved and deeply hopeful for the future of this country," he said in a text message.

During his campaign, Biden issued a series of left-of-center policy proposals that made Wall Street cringe regarding taxes and regulations. The proposals were seen as a carrot for progressive voters who preferred other candidates, but few now believe he will actually get them passed, since Republicans may win the Senate and Biden is not showing a landslide win.

As such, it is not clear whether Biden's Cabinet choices will be seen as market-friendly. The picks are important, because some of those officials will likely be involved in economic stimulus packages the White House will have to negotiate with Congress and will have extensive powers to craft Wall Street regulations.

Current US Federal Reserve governor and former McKinsey consultant Lael Brainard's name has been floated as a potential Treasury Secretary, while Biden has already tapped former derivatives market regulator and Goldman Sachs Group Inc banker Gary Gensler for advice on financial regulation.

Major US stock indexes registered their biggest weekly gains since April this week, as investors bet that Biden would win and Republicans would hold onto the Senate, a scenario that could prevent any major tax increases or regulatory tightening that pinches companies.

Nonetheless, investors have worried that the candidates could contest results for weeks or months. If Trump gains traction with his challenges, it could shake asset prices.

"Investors need to be prepared for some volatility," said Jason Ware, chief investment officer at Albion Financial Group. "There is certainly a risk to stock prices if we get bad tweets. The good news is that it would be short-lived and we are changing hands to someone who I believe is a lot more capable."

-reuters-

World stocks pull back as virus worries resurface

NEW YORK -- Stock markets eased back on Thursday as worries that the world has not seen the last of the coronavirus pandemic caused investors to take some profits after a recent strong run.

US data showing 1.5 million workers filed for unemployment benefits last week -- only slightly less than the prior week -- added to jitters about the economic outlook.

In Europe, investors were underwhelmed by the Bank of England's latest monetary policy decisions, which undermined the pound and London stocks.

Wall Street finished little changed after a choppy session, as investors weighed weak economic data against optimism over the impact of monetary stimulus.

Art Hogan, chief market strategist at National Securities, described the market as being "in a bit of a stalemate" with worrisome economic and coronavirus trends offset by reassuring support from the Federal Reserve and hopes for coronavirus treatments.

Global markets were still "a bit cautious as uncertainty regarding a second wave of COVID-19 continues to simmer, countering recent economic data that has suggested improvement as economies reopen," said analysts at Charles Schwab.

Earlier, Asian equity indices had closed mixed after a 2-day rally.

The Bank of England on Thursday unveiled an extra £100 billion of cash stimulus to prop up Britain's coronavirus-hit economy, a figure in line with expectations, but analysts said the market had hoped for some forward-looking reassurance.

"BoE watchers could feel a little short-changed," said Kallum Pickering at Berenberg.

"The market had expected a clear signal that the BoE would ease policy significantly further at a later date or that the bank was seriously contemplating further expanding its toolkit in response to the COVID-19 mega-recession," he said.

While countries are slowly reopening their economies -- with flights resuming, bars, cafes and restaurants serving people and professional football returning -- new infections continue to surge in some places and are flaring up again in others.

Eyes are on Beijing, which has imposed new lockdowns, closed schools and banned flights again after the emergence of new clusters.

Meanwhile, hospitalizations have risen in Texas among other US states since Memorial Day, and California on Thursday required face masks in public indoor spaces following a jump in cases.

KEY FIGURES AROUND 2030 GMT (4:30 a.m. Friday in Manila)

New York - Dow: DOWN 0.2 percent at 26,080.10 (close)

New York - S&P 500: UP 0.1 percent at 3,115.34 (close)

New York - Nasdaq: UP 0.3 percent at 9,943.05 (close)

London - FTSE 100: DOWN 0.5 percent at 6,224.07 (close)

Frankfurt - DAX 30: DOWN 0.8 percent at 12,281.53 (close)

Paris - CAC 40: DOWN 0.8 percent at 4,958.75 (close)

EURO STOXX 50: DOWN 0.5 percent at 3,249.90 (close)

Tokyo - Nikkei 225: DOWN 0.5 percent at 22,355.46 (close)

Hong Kong - Hang Seng: DOWN 0.1 percent at 24,464.94 (close)

Shanghai - Composite: UP 0.1 percent at 2,939.32 (close)

West Texas Intermediate: UP 2.3 percent at $38.84 per barrel

Brent North Sea crude: UP 2.0 percent at $41.51 per barrel

Euro/dollar: DOWN at $1.1203 from $1.1244 at 2050 GMT

Dollar/yen: DOWN at 106.99 yen from 107.01

Pound/dollar: DOWN at $1.2422 from $1.2555

Euro/pound: UP at 90.18 from 89.55 pence

Agence France-Presse

Asia equities set to plunge after US crude collapses for second day

WASHINGTON/NEW YORK -- Asian share markets were set to tumble on Wednesday as the floor fell out from under US crude prices, exposing the deep damage the coronavirus pandemic has had on global economic demand.

Skittish investors sought the safety of government debt and even dumped safe-haven gold as Brent oil futures plunged for a second day, fueled by a swelling global crude glut.

Australian S&P/ASX 200 futures lost 2.1 percent in early trading while Japan's Nikkei futures rose 0.21 percent.

The collapse in US crude prices has given fresh urgency to bearish voices who say it sounds alarm bells for global growth and are bracing for a catastrophic collapse in asset prices as the COVID-19 pandemic wrecks the world economy.

Earlier his week, the May US WTI futures contract crashed into negative pricing for the first time in history. In addition to massive oversupply concerns, analysts say the plunge also highlights the technical constraints the market faces in responding to shocks.

"The negative price for May WTI futures was probably an anomaly, but it also was a symptom of bigger underlying issues that the industry must address," said Arij van Berkel, who leads the energy research team at Lux Research in Amsterdam.

"Even though the oil industry theoretically has a diversified product portfolio, the current situation shows that its ability to switch between markets is extremely limited."

The Nikkei 225 index closed down 1.15 percent at 19,669.12​​​ on Tuesday. The futures contract is down 2.64 percent from that close.

Hong Kong's Hang Seng index futures lost 1.31 percent.

On Wall Street, the Dow Jones Industrial Average fell 2.67% to 23,018.88, the S&P 500 lost 3.07% to 2,736.56 and the Nasdaq Composite dropped 3.48% to 8,263.23.

The pan-European STOXX 600 index lost 3.39% and MSCI's gauge of stocks across the globe shed 3.01%.

As the difficulties of restarting the U.S. economy sank in, U.S. Treasury yields tumbled, with the five-year note hitting a new record low on rising prices for bonds: one of the safest assets.

The U.S. dollar rose to a two-week high against a basket of currencies, as investors fled riskier assets for the world's most liquid currency while putting pressure on oil-linked currencies such as the Norwegian crown and the Canadian dollar.

Investors face a worldwide supply glut that is expected to overwhelm demand for months or even years and current production cuts to offset that excess are nowhere near sufficient.

US crude recently rose 124.08 percent to $10.01 per barrel while Brent oil futures prices plunged again on Tuesday to $19.82, down 22.49 percent on the day, as panic extended to a second day.

Both Saudi Arabia and Russia said on Tuesday they were ready to take extra measures to stabilize oil markets along with other producers, but they have not taken action yet.

Investors have become increasingly wary of the economic damage from sweeping lockdowns that have brought US business activity to a halt and sparked millions of layoffs.

Governors of about half a dozen US states, including Georgia and South Carolina, are pushing ahead with plans to begin a partial restart of their economies despite warnings that loosening restrictions prematurely could lead to a fresh surge of infections.

Meanwhile, the US Senate on Tuesday unanimously approved $484 billion in additional coronavirus relief for the US economy and hospitals treating patients sickened by the pandemic, sending the measure to the House of Representatives for final passage later this week.

-reuters-

Asian markets look to follow Wall Street rally as oil surges

NEW YORK -- Asian markets on Friday looked to latch onto Wall Street's overnight gains after crude prices notched their biggest one-day surge on record, helping offset concerns about the depth of a global recession.

Despite the rally in stocks, investors still sought the safety of the US dollar and government bonds as an unprecedented number of Americans - 6.6 million - filed jobless claims due to coronavirus-induced lockdowns, as economic concerns stayed front and center.

US stocks rallied after US President Donald Trump said he expects Russia and Saudi Arabia to announce an oil production cut of up to 10 million to 15 million barrels as the two countries signaled willingness to make a deal.

Saudi Arabia said it would call an emergency meeting of the Organization of the Petroleum Exporting Countries, Saudi state media reported.

Nikkei futures edged slightly higher, above the index's cash close on Thursday, and Australia's benchmark was up 1.5 percent in early trade. Hong Kong futures were negative.

E-Mini futures for the S&P 500 fell 0.04 percent. A gauge of stocks across the globe advanced 1.24 percent overnight, adding to modest gains earlier in Europe.

On Wall Street, the Dow Jones Industrial Average rose 2.2 percent, the S&P 500 gained 2.3 percent and the Nasdaq Composite added 1.7 percent.

Projections released by the US Congressional Budget Office showed US gross domestic product will decline by more than 7 percent in the second quarter as the coronavirus crisis takes hold.

Interest rates on 10-year Treasuries will likely be below 1 percent during the quarter as well, the CBO said.

Investors sought the perceived safety of government bonds. Benchmark US 10-year notes fell in price to last yield 0.6111 percent.

Global coronavirus cases surpassed 1 million on Thursday with more than 52,000 deaths as the pandemic further exploded in the United States and the death toll climbed in Spain and Italy, according to a Reuters tally.

The dollar gained for a second straight day against a basket of currencies as investors continued to take shelter in the US currency.

The dollar index rose 0.672 percent, while the Japanese yen weakened 0.21 percent versus the greenback at 108.15 per dollar.

Gold prices jumped as record high US jobless claims intensified fears of the coming economic slowdown and drove investors toward the safe-haven metal.

US gold futures settled 2.9 percent higher at $1,637.70 an ounce.

Highly rated US corporate bond issuers raised a record $110.502 billion this week, according to Refinitiv IFR data, as firms borrowed cash in fear the coronavirus crisis may soon limit their access to capital markets.

Brent futures rose $5.20, or 21.0 percent, to settle at $29.94 a barrel, while US West Texas Intermediate (WTI) crude rose $5.01, or 24.7 percent, to settle at $25.32.

Despite the record surge on Thursday, oil prices have still lost more than half their value this year.

-Reuters-

World stocks fall, close out biggest quarterly drop since 2008

NEW YORK -- Global stock markets fell in volatile trading on Tuesday, and the economic damage from the coronavirus pandemic left the MSCI benchmark of world equities with its biggest quarterly decline since the financial crisis of 2008.

Oil prices remained near their lowest levels since 2002 as a worldwide economic slowdown and travel restrictions sapped demand. Crude futures ended the quarter down nearly 70 percent after record losses in March. Government bond yields held steady as investors remained cautious about buying riskier assets.

Stocks have rallied since the start of last week but remain down more than 20 percent year to date. European equities finished their worst three months since 2002, while Britain's FTSE index posted its largest quarterly drop since 1987.

The US benchmark S&P 500 finished its worst first quarter since 1938.

MSCI's gauge of stocks across the globe shed 0.48 percent.following modest gains in Europe and steep declines in Asia. The index fell nearly 22 percent for the quarter.

On Wall Street, the Dow Jones Industrial Average fell 410.32 points, or 1.84 percent, to 21,917.16, the S&P 500 lost 42.06 points, or 1.60 percent, to 2,584.59 and the Nasdaq Composite dropped 74.05 points, or 0.95 percent, to 7,700.10.

The Dow briefly turned positive in mid-morning trading before losses accelerated, suggesting some investors were bargain-hunting or rebalancing portfolios at quarter's end.

"Stocks have been on a wild ride ... not surprisingly, investors are split on whether to lean into or fade the current rally," said Jonathan Golub, chief US equity strategist at Credit Suisse Securities in New York.

The number of coronavirus infections globally headed toward 800,000. Deutsche Bank analysts noted, however, that for 2 consecutive days, the global growth in new cases was below 10 percent, after exceeding that for most of the past two weeks.

Health officials were much more cautious. A World Health Organization official warned that even in the Asia-Pacific region, the epidemic was "far from over."

Government bond yields dipped slightly, with US benchmark 10-year notes up 1/32 in price to yield 0.6679 percent, from 0.671 percent late Monday.

"In spite of the significant sell-off of most growth-oriented assets since mid-February, we are concerned there is further downside ahead," said Salman Baig, an investment manager at Unigestion.

"The violent market action should not be understated, but the underlying cause – an accelerating pandemic requiring large parts of the economy to shut down – is still with us."

Oil prices stabilized after the United States and Russia agreed to talks to stabilize energy markets a day after crude futures hit 18-year lows. Oil has been hit by a double whammy, with US crude at one point falling below $20 a barrel on Monday, as the virus outbreak has cut global demand even as Saudi Arabia wages a price war with Russia.

Brent crude dipped $0.02, or 0.1 percent, at $22.74 a barrel. US crude climbed 1.4 percent, to $20.38 a barrel, after closing Monday at $20.09, its lowest since February 2002.

The dollar, measured against a basket of currencies, strengthened 0.4% to 99.652.

source: news.abs-cbn.com

Trump says US on top as outbreak shuts largest cities

New York and Illinois followed California Friday in locking down to stem the coronavirus pandemic as President Donald Trump declared the United States was already "winning" the war despite a rapid rise in confirmed cases and deaths.

The move effectively seals off America's largest cities -- New York, Los Angeles and Chicago -- with New Jersey also preparing to follow and Connecticut shutting.

But Trump insisted there was no need for a national lockdown, arguing that other parts of the US weren't hurting as much as its most populous states.

Governor Andrew Cuomo ordered non-essential businesses to close and banned gatherings in New York state, a day after his counterpart Gavin Newsom told California's 40 million residents to stay home.

"We're all in quarantine now," Cuomo told reporters, warning of civil fines and mandatory closures for anyone violating the order, which takes effect on Sunday evening.

The escalation came as COVID-19-linked deaths in the US rose to 216 -- more than doubling in three days -- with more than 16,600 confirmed infections, according to a tally by Johns Hopkins University.

Despite the surge, Trump said the world's number one power was "winning" and "going to win this war."

"Those are really two hotbeds. Those are probably the two hottest of them all in terms of hotspots," Trump told the daily White House news conference, adding that states in the American midwest were not registering as many confirmed cases.

"So no, we're working with the governors and I don't think we'll ever find that necessary," he added.

But shortly afterwards Illinois Governor J.B Pritzker announced an immediate stay-at-home order for the state "to avoid the loss of potentially tens of thousands of lives."

"The only strategy available to us to limit the increase in cases... is to mitigate the spread of coronavirus in the most robust manner possible," he said.

The order is in place from Saturday evening until April 7, Pritzker added.

The head of the US Army Corps of Engineers, Todd Semonite, said the agency was working on refitting more than 10,000 hotel and dormitory rooms in New York into temporary hospitals to alleviate the burden on health centers.

"We would like to think we can do this in three or four weeks and try to go as fast as we can," he said.

The number of confirmed infections in New York state jumped past 7,000 Friday, largely because of an increase in testing, Cuomo said, as he announced he would pass an executive order mandating that only essential businesses can remain open from late Sunday.

He stressed that essential services included grocery stores, pharmacies and food delivery.

Cuomo said that under "Matilda's Law," named after his mother, "non-essential gatherings of individuals of any size" were canceled.

[BOLD] 'Strong steps'

He ordered residents to exercise alone and not hold group activities outside, such as basketball.

He said citizens should avoid public transport "unless urgent and absolutely necessary."

"New York state (is) on pause," he said.

"These actions will cause disruption. They will cause much unhappiness. I understand that," Cuomo added.

He dismissed references to the measures as "shelter-in-place," which they have been called in California, but the rules effectively amount to the same thing.

California's statewide directive, which went into force Thursday evening, also instructs residents to remain at home.

It allows gas stations, pharmacies, banks and laundry services to remain open while restaurants can still provide take-out and delivery.

"They are taking strong steps. I applaud them," Trump said, referring to Cuomo and Newsom.

Trump also announced Friday that the US and Mexico have agreed to restrict non-essential travel across their border beginning on Saturday.

He said the move, similar to one already announced with northern neighbor Canada, was necessary to prevent the "spread of the infection to our border agents, migrants, and to the public at large."

On Capitol Hill, US senators began critical negotiations over a $1 trillion emergency stimulus package to help Americans ravaged by the coronavirus.

The version unveiled late Thursday includes one-time "recovery rebates" of up to $1,200 for adults earning under $99,000 annually, and hundreds of billions of dollars in loan guarantees to industries hard hit by the crises including airlines and small businesses.

Wall Street stocks finished a volatile session much lower Friday, with the Dow down 4.6 percent, bringing the market's worst week since 2008 to a grim conclusion.

source: news.abs-cbn.com